SET-AND-FORGET TRADER

The set-and-forget trader is playing fundamental direction and is seeking very large
moves of 150 to 300 pips. This trader doesn’t want to sit and watch the screen but
play the longer moves and forces behind forex. This requires trading off 4-hour, daily,
and even weekly charts and setting with risk control to target a 3-to-1 ratio of pip
profits over losses. Trading cross-pairs such as the euro–Japanese yen (EURJPY), Australian dollar–Japanese yen (AUDJPY), and euro–Canadian dollar (EURCAD) provide
wide ranges. One disadvantage is psychological. Set-and-forget trades are slow and
take a long time to complete. In contrast, an advantage is that all it takes is three out of
seven wins to be profitable.
The trader wants to enter on the side of the predominant trend, put on the trade with
proper limits and targets. Channel patterns fit this style. In Figure 14.9, we can see the
EURUSD day chart was in an upward channel, and sentiment for the strengthening EUR
is confirmed by the bull sentiment histogram, especially when it turned positive.


By ABE COFNAS